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A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively.
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are
Bell, capital | $ | 72,500 |
Hardy, capital | 65,000 | |
Dennard, capital | 11,000 | |
Suddath, capital | 89,000 | |
Bells creditors have filed a $30,000 claim against the partnerships assets. The partnership currently holds assets of $390,000 and liabilities of $152,500. If the assets can be sold for $235,000, what is the minimum amount that Bells creditors would receive?
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